India urea import offers decline 12% as war supply squeeze eases

Synopsis

India's urea import offers dropped significantly, signaling market easing after war-driven tightness. Offers for the soil nutrient were twelve percent below June's purchase price. State-run producers received bids for millions of tons against tender requirements. Prices have crashed to less than half of earlier war-driven levels. Vessel traffic through the Strait of Hormuz has held below normal.

India, one of the world’s biggest urea importers, received offers for the soil nutrient that were 12% below the June purchase price, signaling that the war-driven tightness in the global fertilizer market is easing.

State-run producer Rashtriya Chemicals & Fertilizers Ltd., which also imports urea on behalf of the government, received offers for about 3.1 million tons against a 1 million-ton tender for the west coast, with prices between $393.65 and $435 a ton, according to people familiar with the matter.

Also Read: India imports 25 lakh tonne of urea, 7 lakh tons of DAP in Apr-Jun to meet domestic demand: Govt

For the east coast, submissions totaled 2.4 million tons against a 700,000-ton requirement, with offers between $390.25 and $435.5 a ton, they said, asking not to be identified due to the commercial sensitivity of the information.

India paid as much as $959 a ton for supplies in April, nearly double pre-war levels. However, prices crashed to less than half for its June tender as supplies eased while global demand weakened.

A fertilizer ministry spokesperson didn’t immediately reply to an email seeking comment sent after office hours.

Vessel traffic through the Strait of Hormuz, a key conduit for global fertilizer trade, has held well below normal since the war broke out in February, disrupting supplies and driving prices higher. Peace talks between US and Iran remain stalled, with both sides claiming control of the crucial waterway.

Also Read: Urea imports may get 50% cheaper before kharif season as China eases supplies